11:43 AM EDT, 10/06/2025 (MT Newswires) -- Knight-Swift Transportation ( KNX ) and GXO Logistics ( GXO ) are among Morgan Stanley's key calls heading into the Q3 print in freight transportation, according to a note Monday.

The investment bank said Knight-Swift is its "overall favored name" as it believes the company's scale and exposure can make it the largest beneficiary of structural supply headwinds.

Morgan Stanley said the company's recent stock price drop "sets a very low expectations bar and potential for upside coming out of a good call/guide."

On GXO, Morgan Stanley said it doesn't expect much detail from new Chief Executive Patrick Kelleher until the 2026 investor day, but believes a potential beat and third guidance raise this year "could be in the cards."

Morgan Stanley maintained its overweight rating on both Knight-Swift and GXO, but lowered the price targets to $67 from $68 for Knight-Swift, and to $58 from $60 for GXO.

Knight-Swift shares rose 2.9% and GXO shares were up 2.1% in recent trading Monday.

Price: 42.60, Change: +1.19, Percent Change: +2.86